RFID Transponder Dispenser and Authorizer

ABSTRACT

A RFID transponder dispenser and authorizer (RTDA) system for distributing and activating an RFID Transponder at a point of purchase. The system has a storage for Transponders and Transponders in the storage. It also has at least one electronic data reader, network access to a processor system, and an application for customer data verification, electronic data and account data verification across the network at the processor, an interface to the RTDA apparatus to control dispensing of Transponders, and receiving an account verification code and an activation confirmation code from the processor. The RTDA reads customer electronic account data, verifies same and verifies the account is valid, dispenses a Transponder to a customer, reads the Transponder ID code, and associates the Transponder ID code with the customer&#39;s electronic account data in a unique customer record in an RFID database, and receives an account activation confirmation code and displays confirmation of activation to the customer.

This application is a continuation of coassigned and copending U.S.patent application Ser. No. 10/615,750, entitled “RFID TransponderDispenser & Authorizer,” filed on Jul. 8, 2003 now U.S. Pat. No.7,069,251, which, in turn, claims priority of U.S. ProvisionalApplication No. 60/393,860 filed Jul. 8, 2002. Priority is herebyclaimed to this case under 35 U.S.C. section 120.

TECHNICAL FIELD

This invention relates to Radio Frequency Identification (RFID)transponders, and more particularly to a method and apparatus forcontrolled dispensing and real time activation of RFID transponders forfast service businesses, and for maintenance of such transponders andassociated electronically processed accounts.

BACKGROUND OF THE INVENTION

Major oil marketers have historically used proprietary credit cardprograms to build customer loyalty. Customers holding branded creditcards, such as Mobil or Chevron gas cards, will be more likely to returnto those branded gasoline outlets to make their fuel purchases.

The early 1980's saw an aggressive move by all the major oil marketersto automate their gasoline stations by replacing the traditionalmechanical fuel dispensers with electronic dispensers that can be resetby a remote operator. However, customers still had to pay at a cashierbooth located either in the station office building or at a kiosk on thefueling islands. Gilbarco, a leading supplier of fuel dispensingequipment, launched their CRIND (card reader in dispenser) technology in1988, which enabled customers to pay at the pump with their creditcards. The first implementation of card readers depended on dial upmodems to connect the station's point of sale (POS) system to the creditcard authorizer network. These connections were upgraded to ISDNconnections and now the majority of stations communicate POStransactions via VSAT (very small aperture terminal) connections.Throughout this evolutionary process, the major oil marketers werealways focused on expediting the fueling transaction for theircustomers.

RFID technology was introduced to the fueling customers in May of 1997when Mobil launched the Mobil Speedpass program. Mobil Speedpass enabledMobil customers to link their bank credit cards, such as VISA orMasterCard, or their Mobil gas card to their Mobil Speedpass account.Mobil retail outlets equipped for Speedpass installed RFID readers atthe pumps internal with the CRINDs. Mobil Speedpass customers are issuedRFID transponders in several format choices which are read by the RFIDreaders mounted in the pumps. This, again, expedited their customers'fueling transactions while still maintaining a high level of security.

Shell Canada is currently deploying RFID technology at their stationsthrough Shell's EasyPAY program. Domestically, Shell began testing RFIDin Florida and Ohio in 1998 and 1999, respectively. Phillips 66 has alsobeen testing RFID technology in their Kicks 66 stores in the Kansas Citymetropolitan area since August of 2001.

Other market tests of RFID payment methods include national brand namessuch as McDonalds, Pizza Hut, Taco Bell, KFC, VISA and MasterCard.

ExxonMobil and Shell Canada are aggressively promoting consumer adoptionof their RFID systems. ExxonMobil currently has 5.5 million Speedpassusers and are targeting to have 30 million users by 2006. Shell Canadais rapidly deploying RFID to all their sites in major metropolitan areasthroughout Canada. These companies both cite faster and easiertransactions at the pump and in store checkout among the advantages ofRFID to entice their existing customers as well as new customers tosubscribe to their respective programs. Yet, the actual process ofsigning up a new RFID subscriber is cumbersome and requires manualintervention on the part of the company through their outsourcedfulfillment houses, network providers, and database managers.

Case Study: ExxonMobil Speedpass

There are currently 4 ways for a prospective new member to subscribe toSpeedpass: online application, apply by phone, download and print/faxapplication form from the Speedpass website, or fill out a hardcopyapplication form available at ExxonMobil stations and mail the form in.

Any of these options can take from 5 to 10 business days from the datethe application is completed until the RFID transponder is in thecustomer's hands. There is no method to process a member application atthe point of purchase. Upon receipt of the new RFID transponder, the newmember must call Speedpass to activate the transponder before it can beused. The new transponder can be used almost immediately upon callingSpeedpass.

Case Study: Shell Canada EasyPay

There are currently 5 ways for a prospective new member to subscribe toEasyPay: online application, apply by phone, download and print/faxapplication form from the Shell Canada EasyPay website, or fill out ahardcopy application form available from Shell EasyPay stations and mailthe form in. Any of these methods take from 7 to 10 business days to getthe RFID transponder into the customer's hands. In addition to theseoptions, some EasyPay station operators have stepped up the promotionand assist the prospective member with the application form on site andfax in the completed form for processing from the store before thecustomer leaves. In this scenario, the new member leaves the stationwith his/her new RFID transponder in possession; however, thattransponder cannot be used until it is activated.

After the new RFID transponder is received, new Shell EasyPay membersactivate their transponders by calling Shell EasyPay. Once the call ismade, the transponders may be used after 2:00 AM of the following day.New members who are given their transponders at a Shell EasyPay stationmust wait 2 days before they can call to activate their transponders.

The above examples illustrate a severe limitation to the RFID deploymentinitiatives put in place by major corporations. The inability of thecurrent process to place an RFID transponder, ready for use, into aprospective member's hands at the point of purchase hinders the rate ofdeployment and may, in fact, discourage some potential members from eversubscribing to the program.

What is needed is a method and mechanism to distribute and maintain RFIDtransponders to the customer and activate those transponders immediatelyand at the point of purchase. The RFID Transponder Dispenser/Authorizerdoes just that.

DISCLOSURE OF THE INVENTION

The RFID Transponder Dispenser/Authorizer (RTDA) is advantageouslydirected to those companies within the Global Retail Petroleum and HighVolume Retailer (HVR) and grocery markets and Quick Serve Restaurants(QSR) who are deploying RFID programs or are planning to deploy RFIDprograms to their retail outlets.

The RFID Transponder Dispenser/Authorizer provides a secure method andmechanism to deploy to a retailer's customers RFID transponders(sometimes referred to herein simply as Transponder or Transponders)that are immediately in the customer's hand at the Point of Purchase(PP), activated, and ready to use immediately for purchases. Byleveraging current communications technologies and electronic financialauthorization protocols, the RTDA can reduce the time it takes to addnew customers to the Retailers' RFID subscription base from weeks tominutes; and at significant cost savings.

The RTDA facilitates the customer's application process to put aTransponder into a customer's possession right at the Point of Purchase.Successful deployment of any retailer RFID program is believed to dependupon building a subscriber base of critical mass within a critical timeframe. One obstacle to doing so is the reluctance of existing and newcustomers to endure an application process for becoming a new RFIDsubscriber that either is, or is perceived to be, difficult or even justbothersome. By automating much of the application process, the RFIDTransponder Dispenser/Authorizer encourages such customers to subscribeto the Retailer's program.

The RTDA also facilitates maintenance of customer RFID accounts. Byemploying the same technologies and protocols used to activate newcustomer accounts, the RTDA enables those same customers to maintaintheir accounts easily and without suffering through an automated phonequeuing process, or having to go on line to do so.

Retailers will advantageously use the RTDA to rapidly deploy their RFIDinitiatives to their existing and new customer base; to build customerloyalty; and to promote sales at larger volumes. Customers willadvantageously use the RTDA to facilitate their RFID applicationprocess, and to obtain and authorize for use, and maintain, their secureRFID transponders and associated accounts. Existing RFID subscribers usethe RTDA to maintain their RFID accounts with the Retailer, performingtasks such as updating their profile or changing the linked credit cardor checking account, thus avoiding other cumbersome phone or onlineauthorization and maintenance processes.

RFID Transponder Dispenser/Authorizer Process

Note that an advantageous message or other display at the gas pump orother product display or vending site can inform the Customer ofadvantages of using an RFID transponder, and then instruct the Customerto get more details and obtain his/her own transponder at the in-storeRTDA.

Note also that desirably the RTDA in passive mode displays “Welcome” and“Press here to start transponder authorization process” (or the like)messages, and secondary frames visible on the RTDA touch screen arescrolling or looping with infotainment such as entertainment and/orcurrent information like weather, traffic, news and/or other targetedinformational messages.

So, suppose a customer has decided to obtain and activate and RFIDtransponder for their personal use at the select store (or other storesin the chain, or in fact, any other stores in any RFID programassociation of stores). The Customer initiates the new RFID accountsignup and RFID dispensing and activation process (by way ofillustration, and not be way of limitation) as follows:

RFID Account Signup Process

After the Customer chooses to signup for a new RFID account and firstactivates the touch screen prompts, the RFID account signup sub-processbegins. The screen refreshes to instruct the Customer to swipe his/hercredit card or insert a check having standard MICR imprinted accountinformation on it into the respective reader.

And the Customer swipes (for example) a credit card through card reader.The process for activation using a MICR encoded blank check is generallyidentical, except as otherwise noted herein, and except that the codedinformation is generally particular to EFTs and the ACH automatedbanking system.

The magnetic strip (Magstripe) track data (or MICR data) is read andpreferably stored in volatile memory onboard the RFID TransponderAuthorizer. Optionally, the data just read is transmitted or uploadedfor immediate verification as an active, valid account. If the accountinformation is invalid, or the account not active or in any way flagged,the application process can then be selectably interrupted, sent alongan alternate path, or terminated.

The display then brings up a series of application screens with promptsand interactive help to guide the customer through the applicationprocess. The data read in the preceding step is then displayed forCustomer verification. The Customer then completes the on screenapplication form using touch screen prompts and optional keyboard,including such data as billing address (used to verify account),driver's license number and state (used for collection on ACHtransactions), birthdate (for account security purposes), email address(optional), phone number (optional for preferred loyalty programmembership), and various Customer preferences.

All entered information is preferably stored into volatile memoryonboard the RTDA, and the Customer optionally associates their photo tothe transponder account for additional security and future enhancedservices, and the RTDA onboard webcam takes a digital photo and storesit in volatile memory.

The screen refreshes to display a Terms of Use Agreement and promptscustomer to accept or decline. If the Customer declines the Terms of UseAgreement, the transaction is terminated, and a message is displayed toinvite to Customer to apply at a later date. The RTDA prints out aconfirmation of the cancelled transaction for the Customer, and thescreen refreshes to the Customer Service options where the Customer canlearn more about the Retailer's RFID program, or even give feedback tothe Retailer.

If the Customer accepts the Terms of Use Agreement, a datum representingacceptance of the Terms of Use is optionally stored, and the screenrefreshes to instruct customer to wait while the request is beingprocessed (and optional content can be presented on screen at thistime). Meanwhile, the RTDA establishes a connection to an appropriateprocessor network (that network and its computer processing equipmentand associated databases herein generically referred to in aggregationas the Processor) via VSAT, or terrestrial communications link, or thelike, and information so far stored in RTDA volatile memory for thistransaction is transmitted to the Processor via the communications link.

The Processor updates all this Customer information to a new record inthe Processor's RFID program database and assigns the record a recordlocator ID (RecLocID) code. The new Customer record is also then queuedfor activation by the Processor, depending on the following event steps.

If the credit card or check presented is verified as an active accountby the Processor on the Processor's financial network access, theProcessor returns a selected validation code (or “valid flag”, one ofwhich is sometimes also referred to herein as a “true bit”) based uponwhether the account is valid, valid but with mismatched address, orinvalid, or such other codes as will occur to those skilled in the art.The RTDA looks at the value of the valid flag to determine which logicalroutine to next take the Customer through. The RecLocID transmitted downto the RTDA by the Processor is used to later identify the returningtransaction at the point when the transponder ID is returned to theProcessor.

If the valid flag indicates that the credit or debit account info anduser verification data match the corresponding financial institutiondata on file, the RTDA continues through the process of dispensing atransponder and continuing with its account activation. The transponderis dispensed after receipt of the correct valid flag from the Processor.The transponder as stored in the RTDA contains a unique encrypted IDnumber, and the customer takes the dispensed transponder and waves it infront of the RTDA RFID reader. The unique Transponder ID is thus readand then transmitted, along with the RecLocID back to the Processor,where the Processor uses the RecLocID to locate the correct recordagainst accounts queued for activation, and then activates thecorresponding Customer account. Account activation happens thus at theProcessor, or back end, in the Processor database.

If the credit card or check is rejected by the Processor on the network,the Processor returns a false bit with one of several possible reasons,such as the uploaded billing address of the account does not match theaddress of record. In this case, the screen display optionally promptsthe Customer to re-enter billing address at least once. The RTDA thenresubmits newly entered information for verification. If the false bitis because the account is closed or otherwise restricted, the screendisplays a “Declined” message with instructions for the Customer to callher financial institution or the Retailer's RFID Program CustomerService, and the Customer is presented with the option to signup for anew RFID account using a different method of payment. If the Customerdeclines this option, the transaction and connections are terminated.This message times out after a predetermined interval and the RTDAresets.

Alternately, upon receipt of a true bit, the RecLocID is preferablystored into volatile memory resident onboard the RTDA, and a printedcopy of the Terms of Use Agreement is presented to the Customer, while anew RFID transponder is dispensed into the output tray. The screenoptionally refreshes to display “Please take transponder and press OK tocontinue”, or the like, and the Customer takes the transponder fromdispenser tray and presses “OK” on touch screen display, or the RTDAotherwise optionally senses that the Transponder has been taken from theoutput tray. The screen instructs the Customer to wave his transponderin front of the reader, and when the Customer waves his new Transponder,the RTDA performs a handshake with RFID transponder, reads thetransponder ID code stored in or otherwise resident in the Transponder,and preferably stores it into volatile memory as well.

An acknowledgment panel optionally illuminates to indicate a successfulread, and the screen refreshes to instruct Customer to wait while thetransaction is being processed. The RTDA transmits the encryptedtransponder ID code, along with the RecLocID, to the RFID Programdatabase via the previously established communications link. TheProcessor now updates the queued Customer record with the transponder IDcode.

RFID Transponder Authorization Process

When automatic authorization of a new RFID account linked to a creditcard or bank account is the default Processor mode of operation, theProcessor transmits to the RTDA an activation code or “activation bit”corresponding to the state of approval of the new account. The screenoptionally displays a “Thank You” message or the like to notify theCustomer his new RFID transponder is ready for immediate use.

When the Processor is set to batch the database updates, a differentactivation code will cause a message to notify the Customer that hisRFID transponder will be ready for use after the next batch interval(i.e. “after 12:00 am” or “in 24 hours”). This message times out after apredetermined interval, the communication link is terminated, and theRFID Transponder Dispenser/Authorizer resets.

When authorization of an RFID account linked to a credit card or bankaccount is optionally set up to require some kind of in-store cashierverification of Customer ID, final authorization of the Transponder isqueued in the Processor's RFID Program database pending verification ofCustomer ID by the cashier. The screen displays a “Thank You” message orthe like and instructs the Customer to activate his RFID transponder atthe cashier station. (This message also optionally times out after apredetermined interval, and the communication link is terminated, andthe RFID Transponder Dispenser/Authorizer resets.)

The cashier verifies the Customer ID, and asks the Customer to tap orwave his Transponder on a small reader mounted at cash register area,the encrypted transponder ID code is read and transmitted to theProcessor via the network, and the Transponder ID code is verified aspart of a pending activation by the Processor. The Processor returns atrue bit to the cashier terminal along with a request to enter thestore's authorization code, and the cashier enters the storeauthorization code. The store authorization code is transmitted to theProcessor where it is verified and the queued new account for thetransponder ID is activated in the RFID Program database. (Authorizationcodes are assigned to each specific store in the network. This allowstracking of success of RFID promotion on a per store basis and requires3rd person verification of customer ID.)

The process to obtain and activate the new RFID transponder is completedin minutes including RFID transponder authorization by Retailer's storeoperator. Some Retailer networks batch activation of newly issued RFIDtransponders. In the case of such a Retailer employing the RFIDTransponder Dispenser/Authorizer at their sites, the RFID transpondersdispensed will be activated upon batching by the Retailer network.

One embodiment of the disclosed RFID system is an RFID TransponderDispenser/Authorizer (RTDA) suitable for a plurality of products thathas a credit card reader (and optional MICR check reader), a RFIDantenna and reader, a barcode reader, a printer, a holder for holding aplurality of RFID transponders, with new transponders for dispensing toqualified customers, and a mechanism for dispensing the RFIDtransponders. The system advantageously also includes PC hardware andsoftware, a CPU and mainboard, an optional harddrive, and a LCDtouchscreen with a graphical user interface. It may also include networkinterface hardware and software, whereby any RFID transponder dispensedis also ‘read’ by the RFID reader and then verified along with selectcustomer data by the Retailer's RFID customer database.

Another embodiment of the disclosed RFID system captures customerinformation data via a magnetic strip credit card reader, or a MICRcheck reader, and via supplemental and confirming manual input, andformats and encrypts this data, and communicates with a Processor orauthorizer network through the included network hardware. This datasystem allows customers to choose to receive and authorize RFIDtransponders via a graphical user interface, via an authorizer network.

An alternate, or variant, system automates programming of selected RFIDtransponders in the RTDA with additional data such as unique encrypteduser identification numbers, or customer preferences, or specialcustomer selected features, or the like, and also transmits thosenumbers and other data to the operator's or retailer's RFID customerdatabase.

This application also herewith incorporates by reference that certainU.S. Provisional Patent Application 60/393,860 filed Jul. 8, 2002, as ifit was fully set forth herein.

An RFID transponder dispenser and authorizer (RDTA) system is disclosedfor distributing and activating an RFID Transponder at a point ofpurchase. The system has a storage for Transponders and Transponders inthe storage. It also has at least one electronic data reader, networkaccess to a processor system, and an application for customer dataverification, electronic data and account data verification across thenetwork at the processor, an interface to the RTDA apparatus to controldispensing of Transponders, and receiving an account verification codeand an activation confirmation code from the processor. The RTDA readscustomer electronic account data, verifies same and verifies the accountis valid, dispenses a Transponder to a customer, reads the TransponderID code, and associates the Transponder ID code with the customer'selectronic account data in a unique customer record in an RFID database,and receives an account activation confirmation code and displaysconfirmation of activation to the customer.

The system advantageously includes a webcam or the like, a printer, anLCD touchscreen, and/or a barcode reader. The Transponder storage anddispensing mechanism preferably has more than one dispenser, where eachdispenser selectably dispenses a different kind of Transponder, such askey fobs, smart cards and the like. Each Transponder is dispensed in aphysically active mode, that is, capable of having its stored ID read byan RFID reader; activation, or the ability to actually use theTransponder for purchases, happens at a processor back end, when theTransponder ID is linked in a customer record with an valid credit cardaccount or the like. This is a live or dynamic linkage of theTransponder and the credit card account. Once set up, with theTransponder in hand, no further calls or other customer action isrequired.

An RTDA apparatus is disclosed for distributing and activating an RFIDTransponder at a point of purchase. It includes storage for Transpondersand a supply of Transponders that are dispensed from the storage,network access to a processor system, a MICR reader, a credit/debit cardreader, a bar code reader (or any other electronic data reader now knownor later developed), an RFID reader, a touchscreen input device (onwhich can be displayed optional infotainment and the like), and adispenser controller. The readers read customer financial account dataand send it across the network to the processor system, and the RFIDreader reads the unique Transponder code and sends it across the networkto the processor system, such that the dispenser controller effectssecure dispensing of a Transponder upon a verification from theprocessor. The upload sending of customer financial account data mayoptionally be delayed until all customer input is complete and an optionTerms of Use agreement is accepted, or it may be uploaded immediatelyfor immediate verification of validity of the customer payment account.

A method is disclosed for securely dispensing an RFID Transponder at apoint of purchase for use by a customer, with the RFID Transponderhaving a unique ID code readable at the point of purchase. The methodincludes reading at the point of purchase and uploading customerselected electronic account data through a network to a processor,processor validation of the account data and sending back to the pointof purchase a validation code and a record locator code, reading thevalidation code and selectably dispensing a Transponder to the customerif the code matches preselected criteria for dispensing, reading thedispensed Transponder ID code at the point of purchase and uploading itand the record locator code through the network to the processor.Processor activation of the Transponder ID is by association of theTransponder ID with the customer selected electronic account in aprocessor database record such that the customer account may bedynamically charged whenever the unique Transponder ID is associatedwith the customer database record for payment. The timing of activationcan be immediate, batched (such as daily), or held for supplementalverification of the customer's ID for heightened customer security.

After verification of the customer payment account, the customerdatabase record is preferably queued for later activation upon receivinga valid Transponder ID. Dispensing of the Transponder may advantageouslybe made conditional upon acceptance by the customer of a displayed termsof use.

The method optionally sends an activation confirmation code back to thepoint of purchase such that the customer is immediately advised as tothe status of activation, based on the confirmation code. After theactivation, the customer may at any time log in to the processor fromthe point of purchase to perform maintenance on the customer record atthe processor database, such as by modifying the account, linking anadditional transponder to the account, replacing a lost transponder,assigning the Transponder to a different customer financial account,updating the Transponder, and cancelling a Transponder.

Where the selected timing of activation is that activation is held forpoint of purchase cashier verification of customer ID, the customer isinstructed to verify her own personal identification with the cashierand the cashier does so. Then the Transponder ID code is read again,either by a reader that is controlled by the cashier, and/or by anyreader, but with the cashier inputting a store code to confirm hisverification of the customer ID, and the Transponder ID and the storecode if any are sent to the processor, such that the customer accountmay immediately thereafter be dynamically charged.

BRIEF DESCRIPTION OF THE DRAWINGS

FIGS. 1A and 1B are a flow chart of the RFID authorization andactivation process.

FIGS. 2 a&b are embodiments of an apparatus for dispensing, activatingand maintaining RFID transponders.

FIGS. 3 a&b are alternate embodiments of an apparatus for dispensing,activating and maintaining RFID transponders.

FIG. 4 is a flow chart of an overview of the RFID authorization andactivation process.

FIGS. 5A–5D are a flow chart of the Modify account process.

FIGS. 6A–6D are a flow chart of the Add Transponder process.

FIGS. 7A and 7B are a flow chart of the Lost Transponder process.

FIGS. 8A and 8B are a flow chart of the Assign RFID to new accountprocess.

FIG. 9 is a flow chart of the Update RFID process.

FIG. 10 is a flow chart of the Cancel Transponder process.

FIG. 11 is a flow chart of the Validate Credit Card process.

FIG. 12 is a flow chart of the Activate Transponder process.

FIG. 13 is a flow chart of the Cancel Transaction process.

FIG. 14 is a flow chart of the Validate Transponder process.

FIG. 15 is a flow chart of the Validate RFID process.

BEST MODE OF CARRYING OUT THE INVENTION

Turning now to the drawings, the invention will be described in apreferred embodiment by reference to the numerals of the drawing figureswherein like numbers indicate like parts.

FIG. 4 is a system overview for the disclosed RTDA system 400. Welcomescreen 401 runs in a customer attraction loop with optional retailerpromotional content 402, mediated by time out counter 403. In someembodiments, after a customer activates the system, such as by touchingthe touch screen, they are asked if they are already an existing loyaltycustomer 410; if they are an existing loyalty customer 430, that part ofthe process ends. If they are not already members, they are asked ifthey would like to sign up 420 and then get an opportunity to sign up440 if they want to, or proceed to other RTDA options 450, mediated bytime out counter 404.

Principal sign up or use options for RTDA customers are RFID accountsignup 100 (see FIGS. 1A and 1B), modify payment account info 500 (seeFIGS. 5A–5D), get an additional transponder 600 (see FIGS. 6A–6D),replace or just cancel a lost transponder 700 (see FIGS. 7A and 7B), andvarious other customer service 410 options (see FIGS. 8A, 8B, 9 and 10).Customers can also choose to authenticate a photo of themselves 1600 forassociation with their RFID account.

FIGS. 1A and 1B show a flow chart of RFID authorization and activationprocess 100. It should be noted that in general input informationincluding credit card ISO or MICR ABA information that has been read ispreferably stored in volatile onboard memory. Information is alsopreferably cleared from memory upon uploading to the processor database.It should also be noted that account information may in fact already beavailable if the customer enters this procedure from the Lost/ReplaceTransponder option and desires a replacement transponder. Having theinformation thus displayed advantageously allows the customer to quicklycomplete the process for a new transponder.

If account info is already available 101, then optionally the customercan fill in fields on screen for application entry 102; otherwise, thecustomer swipes a credit or debit card or MICR encoded check 110 in anappropriate reader, and then proceeds to enter application data, such asname and address (and optional State ID info such as Driver's Licensenumber and the like) 103, phone, birthdate and optional email info 104,an “always print receipt” option 105, and also remaining credit card orbank (checking) account info 106. The Customer is asked if they want toestablish additional use limitations 108, such as by associating a photo1600 with the account. When the photo is approved (accepted by a cashieras authentic to the particular customer signing up), or if they did notwant any additional use limits, they are presented with a copy of aTerms of Agreement and Privacy policy 120, or the like, and asked ifthey accept the Terms or not 121. If they do not, the transaction iscancelled by sending a series 21 code 1300 (see FIG. 13) and a printedconfirmation of the cancellation is optionally printed 122 for thecustomer and the process ends 199.

If the customer accepts the terms of use, a validate procedure 1100 (seeFIG. 11) leading to a series 01 code return to the RTDA is initiatedwith the Processor. If the billing address entered does not match 107the billing address on file for the card or other account, a 012 code isreturned at a check code (also referred to as a valid or validity flag)step 130, and the customer has a chance to reenter the billing address.If the card or other method of payment is not accepted, an 013 code isreturned, the customer is so informed 131, and asked if he wants to trya different form of payment or account to link 123, failing which theprocess proceeds to cancellation 1300 et seq; however if a new form ofpayment is indicated, then swipe or read step 110 et seq is repeated. Ifthe account already has a maximum number of transponders allowed thatare all already associated with the account, then a 014 code is returnedtelling the customer so 132, and likewise he is asked if he wants to tryalternate payment 123, et seq.

If the card (and reference to such a card in this discussion, unlessspecified otherwise is also a reference to both credit and debit typecards and MICR encoded checking accounts) is approved, the Processorreturns a 011 code and a new Transponder is dispensed 140.

Then follows the Transponder (account) activation step 1200 (see FIG.12) which involves another communication with the Processor and a returnof an 02 series code or flag. If an 022 code is returned it means thetransponder dispensed is already associated with an active account(‘already active’) and the customer is invited to wave the transponderas second time for a confirming read 151 and step 1200 repeats. If an023 code is returned, it means the transponder ID was not recognized bythe Processor and the customer is invited 152 to call a help desk andthe process ends 199. If an 021 code is returned, there is aconfirmation 125 that everything matched up, and the account for the newRFID is now active and the RFID may be used immediately and the processends 199. Optionally, before confirmation 125, the customer may sign up1700 for a loyalty points option 1701, by creating a new loyalty account1702, and checking the validity flag 1703 for an 11 series code. A 112code means there already is an active loyalty link for the indicatedRFID account and the confirmation 125 proceeds; if a 111 code isreturned then a loyalty option activation step 1705 is initiated beforeconfirmation 125.

FIGS. 2 a and 3 a illustrate embodiments of an apparatus 200 fordispensing, activating and maintaining RFID transponders, sometimesreferred to herein as the RFID Transponder Dispenser/Authorizer (RTDA),both outside front and inside views, respectively. FIGS. 3 b and 2 b arealternate embodiments showing interior and back side views respectively.

RTDA hardware components include credit card reader 201, MICR reader202, RFID reader and antenna module 203 (including RFID reader and RFMunit 203 a and antenna dish 203 b), RFID transponder dispenser 222having holding bin, dispensing mechanism, and drop tray 209, dispensermodule 222 containing a plurality of RFID Transponders, CPU andmainboard 224 (with optional harddrive, Ethernet, video and soundsubsystems), LCD touchscreen 208, barcode reader 204, printer 221 withprinter paper output slot 205, optional web-type digital camera 207,optional brand panel 206, power supply 223, speaker 213 a and speakergrill 213, case openings for the card and MICR readers 201 a, for thebar code reader 204 a and for the drop tray door 209 a, and optionalkeyboard 212, all arranged substantially as illustrated, or arranged asmay now or later occur to those skilled in the art to achieve bestcost/performance ratio, and optimization of ergonomic and aestheticfactors, and the like.

RTDA software components include conventional communications software toenable interface with credit card authorizer network (Processor) and(optional) store POS systems, a customer interface application 400 (seeFIG. 4) to enable the RFID application and maintenance processes, andlogic system and controller software to manage the hardware components,and any RFID Transponder programming and reading.

FIGS. 5A through 5D show a flow chart of the process 500 of modifyingand existing REID 5 account from the RTDA. First the existing activatedTransponder is scanned 501 (the Transponder is waved or tapped at aTransponder reader); then the appropriate birthdate is entered 502. Avalidate transponder step 1400 (returning an 03 series code based onbirthdate correspondence) is then run (see FIG. 14). If an 035 code isreturned, it means the birthdate just entered does not match and thecustomer has another chance 505 to reenter it.

If anything other than an 031 code (Transponder is birthdate Valid—seediscussion below) is returned, a separate routine, check Valid Flag 530is run. If the code returned is 034, a Transponder not found notice 534is given the customer and the process ends 599. If an 033 code isreturned, a Transponders exceeded check 533 is run to see if the pre-setor pre-authorized number of Transponders for this account (preselectedby customer or by Processor policy) has been exceeded.

If yes, a customer notice that this particular Transponder waspreviously cancelled 536 is given and the process ends 599; if not, thecustomer is told the Transponder was previously cancelled and has theoption of reactivating it 540. This is the effect of an error checkingroutine that is believed to be advantageous; if the customer haspreviously cancelled a transponder he thought was lost, but that turnsout to be for example simply on another keychain, and he now wants touse it after all, the processor sees this transponder as recentlycancelled (not yet deleted from the database, but marked for suchaction) rather than just deleting the transponder account at this point,so long as the customer has not already exceeded his limit oftransponders allowed on the payment account. This gives the customer theoption of reinstating the transponder. However, if he has alreadyreplaced the transponder previously, or added new ones and is now at hismaximum number, the option to reinstate this previously reported missingtransponder will not be available, thus the “previously cancelled”message.

The maximum number of transponders is generally set in the merchantaccount per merchant's business rules. Such rules include transaction $limits, automatic activation at RTDA vs. Cashier verification foractivation, maximum number of transponders allowed per RFID account,various loyalty options, and the like.

If the customer chooses not to reactivate, confirmation of cancellation522 and the process ends 599; if the choice is yes, the account info isdisplayed 541, and the card or MICR is read 510. If the account numberassociated with the Transponder is not the same as the account numberjust read 511 then the customer is asked to re-swipe or re-read the cardoriginally used in the signup 512. If the account number matches, Termsof Use are again optionally presented 511 and accepted or not 521. Ifnot a cancel transaction step 1300 is run, confirmation of cancellationis printed 522 and the process ends 599; if accepted (or if the step 521is skipped), an Activate Transponder 1200 is run, a check valid flag 550is done and confirmation of activation is run and optionally printed525, and the process ends 599.

If 031 code is returned at step 520 above, the account info is displayed524, and the card or MICR is read 510. If the account number associatedwith the Transponder is not the same as the account number just read 511then the customer chooses whether to assign a new account 513 to theTransponder, and so, an assign new account to RFID step 800 (see FIGS.8A and 8B) is run, the account is updated 503 and the process ends 699.If a new account is not to be assigned at step 513, then the customer isasked to re-swipe or re-read the card originally used in the signup 512.If customer chooses not to re-swipe, a cancel transaction step 1300 isrun, confirmation of cancellation is printed 522 and the process ends599.

If the account number associated with the Transponder is the same 511 asthe account number just read at step 510 then the customer chooses 560whether to update expiration date 561, change or add photo 1600 orchange other account info. Update expiration date 561 is followed by anupdate RFID account process 900 (see FIG. 9), an account updatedacknowledgment 503, and process end 599. If a photo is to be added orchanged, a new photo is submitted and approved 1610 or not, and ifapproved, new Terms of Use are optionally presented 520 and the accountis updated 900 and account updated confirmation 503 and process ends599. If other account info is to be changed, then customer proceeds toenter application data, such as name and address (and optional State IDinfo such as Driver's License number and the like) 563, phone, birthdateand optional email info 564, an “always print receipt” option 565, andthe account is updated 900 and account updated confirmation 503 andprocess ends 599. FIGS. 6A–6D show shows a flow chart of process 600 ofadding an additional Transponder to an existing RFID account from theRTDA. First the new Transponder is scanned 601; then the appropriatebirthdate is entered 602. A validate transponder step 1400 (returning an03 series code based on birthdate correspondence) is then run. If an 035code is returned, it means the birthdate just entered does not match andthe customer has another chance 603 to reenter it.

If anything other than an 031 code (see discussion below) is returned, acheck Valid Flag 530 is run (See FIGS. 5A–5D though processes in FIGS.6A and 6B are not necessarily the same as for FIGS. 5A–5D, this latterprocess 530 is identical to the illustrated 630 process).

If an 031 code is returned, a Maximum number of Transponders isevaluated 633. If this additional Transponder would exceed the maximumnumber allowed, the customer is so notified 637, and the process ends699; if the maximum number allowed is not exceeded, then the accountinfo is displayed 624, and the card or MICR is read 610. If the accountnumber associated with the Transponder is not the same as the accountnumber just read 611 then the customer is asked to re-swipe or re-readthe card originally used in the signup 612. If the account numberassociated with the Transponder is the same 611 as the account numberjust read at step 610 then the customer chooses 608 whether to addadditional use limitations for this new Transponder (see FIGS. 1A and 1Bfor discussion and options here). If no additional use limitations, thennew Terms of Use are optionally presented 620 and if not accepted acancel transaction process 1300 is run, with confirmation 622, andprocess ends 699. If Terms are accepted, a new Transponder is dispensed640, followed by activation step 1200 and confirmation 625 and processends 699.

FIGS. 7A and 7B show a process 700 for replacing or cancelling a lostTransponder. First the card or MICR associated with the lost Transponderis read 710 and confirming billing address is entered 703, followed by avalidate RFID account process 1500 (see FIG. 15). If the address entereddoes not match the address on in the Processor record for the customer,an 072 code is returned and a billing address non-match notice 707 isgiven. If there is no valid account as swiped on record, an 073 code isreturned and an account not found notice is given 734. Otherwise an 071code is returned and account info is displayed 724.

The particular Transponder lost is selected 730 from a list presented(if there is more than one Transponder registered to the customer EFIDaccount), and the customer chooses to replace or just cancel the lostTransponder 731. If it is to be cancelled, a cancel Transponder process1000 is run, followed by notice that the Transponder has been cancelled1010 and optionally printed confirmation 722. If it is to be replaced, abirthdate is requested 702, additional use limits are inquired of 708,and Terms of Agreement are again preferably presented 720 Uponacceptance, a replacement Transponder is dispensed 740, the oldTransponder is cancelled 1000, the new Transponder is activated 1200,with confirmation 725 and process ends 799.

FIGS. 8A and 8B, and 10 are selected maintenance processes selected atstep 410 in FIG. 4.

FIGS. 8A and 8B show a flow chart of the maintenance process 800 ofassigning a new credit, debit or checking account to an alreadyactivated RFID Transponder and its associated record in the REIDdatabase. Note that account information from the existing Debit accountis optionally displayed to assist the customer during the input process.As with the process illustrated in FIGS. 1A and 1B, input informationincluding credit card ISO or MICR ABA information that has been read ispreferably stored in volatile onboard memory. Information is alsopreferably cleared from memory upon uploading to the processor database.

The customer can fill in fields on screen for application entry 802;otherwise, the customer swipes a credit or debit card or MICR encodedcheck 810 in an appropriate reader, and then proceeds to enterapplication data, such as name and address (and optional State ID infosuch as Driver's License number and the like) 803, phone, birthdate andoptional email info 804, an “always print receipt” option 805, and alsoremaining credit card or bank (checking) account info 806. The Customeris asked if they want to establish additional use limitations 808 forthe new account, such as by associating a photo 1600 with the account.When the photo is approved, or if they did not want any additional uselimits, they are presented with a copy of a Terms of Agreement andPrivacy policy 820, and asked if they accept the Terms or not 821. Ifnot, the transaction is cancelled by sending a series 21 code 1300 and aprinted confirmation of the cancellation is optionally printed 822 forthe customer and the process ends 899.

If the customer accepts the terms of use, a validate procedure 1100leading to a series 01 code return to the RTDA is initiated with theProcessor. If the billing address entered does not match 807 the billingaddress on file for the card or other account, a 012 code is returned ata check code step 830, and the customer has a chance to reenter thebilling address. If the card or other method of payment is not accepted,an 013 code is returned, the customer is so informed 831, and asked ifhe wants to try a different form of payment or account to link 823,failing which the process proceeds to cancellation 1300 et seq; howeverif a new form of payment is indicated, then swipe or read step 810 etseq is repeated. If the account already has a maximum number oftransponders allowed that are all already associated with the account,then a 014 code is returned telling the customer so 832, and likewise heis asked if he wants to try alternate payment 823, et seq. For example,the customer may already have Transponders linked to more than onecredit card or checking account. If he has 3 (assume max=3) transponderslinked to his MasterCard and 1 linked to his checking account, and hegoes through this routine to change his one linked to checking to linkto the same MasterCard, he will be notified that his MasterCard alreadyhas the maximum number allowed, and he will be offered to link to adifferent account (such as another Visa) or to leave it as is.

If the card is approved, the Processor returns a 011 code and an updateaccount process 900 is run to return a series 17 code. If a 171 code isreturned to the check flag step 850, indicating account validity andacceptance by the processor and replacement of the old payment accountwith the new one, then the customer is so notified 825 and given anadditional new account now linked to Transponder xxxx notice 826 andprocess ends 899.

The update RFID account process 900 shown in FIG. 9 can be run as acustomer service at any time, as well as being called by several otherprocesses, as discussed above. First, a connection is established 901with the processor, and data is sent to the processor database 902 alongwith a transaction code in the data header for this transaction. Theprocessor reads the transaction code, and if it is for updating cardexpiration 904, a flag code 050 is returned with RecLocID 999; if forupdating billing info 905, a flag code 040 is returned with RecLocID999; if for changing the linked account, a flag code 171 is returnedwith RecLocID 999; if for amending the account record with a photo, aflag code 060 is returned with RecLocID 999.

The cancel Transponder process 1000 shown in FIG. 10 can also be run asa customer service at any time, as well as being called by several otherprocesses, as discussed above. First, a connection is established 1001with the processor, and data is sent to the processor database 1002along with a transaction code in the data header for this transaction.The Transponder ID is marked for deletion 1003, and if there is only oneTransponder registered on the customer account, the account itself isselectably marked for deletion. An 081 code is returned along withRecLocID 1099.

The validate card or MICR process 1100 shown in FIG. 11 is generallyonly called by the several other processes discussed above. First, aconnection is established 1101 with the processor, and data is sent tothe processor database 1102 along with a transaction code in the dataheader for this transaction. The account address for the card or MICR isverified 1180 via a conventional authorizer network 1190.

If verified 1110, a check on maximum number of Transponders 1133 is runand if exceeded 1114, an 014 code is return to the RTDA with RecLocID1199. Again, by way of example, a customer may wish to use a credit cardor checking account that is already linked with other Transponders tosign up for a Transponder through the new signup process. Thus themaximum number of transponders allowed on this card may be exceeded.Otherwise, the transaction code is reviewed 1140 and if it's for an RFIDaccount already queued for activation (16), an 011 code is returned;it's for an RFID account to be created(01), an 011 code is alsoreturned, and in either case, to the RTDA with RecLocID 1199.

If the card number is not verified, only because the address as enteredat the RTDA does not match the financial institutions records 1120, an012 code is returned 1112 to the RTDA with RecLocID 1199. If the cardaccount is inactive or otherwise restricted, an 013 code is returned1113 to the RTDA with RecLocID 1199.

The activate transponder process 1200 shown in FIG. 12 is also generallyonly called by the several other processes discussed above. First, aconnection is established 1201 with the processor, and Transponder IDand record number data, preferably conventionally encrypted is sent tothe processor database 1202 along with a transaction code in the dataheader for this transaction. The record number and Transponder ID areverified 1210.

If verified 1210, a check on maximum number of Transponders 1233 is runand if exceeded 1224, an 024 code is returned to the RTDA with RecLocID1299. Otherwise, the Transponder ID is linked to the customer's RFIDaccount record in the processor database 1250 and an 021 code 1221 isreturned 1299.

If not verified, a check to see if the Transponder ID is already activeis run 1220, and if so, an 022 code 1222 is returned 1299. If notalready active, but the ID is not recognized as a valid ID, an 023 code1223 is returned 1299.

The cancel transaction process 1300 shown in FIG. 13 is also generallyonly called by the several other processes discussed above. First, aconnection is established 1301 with the processor, and a cancel requestis sent to the processor database 1302 along with a transaction code inthe data header for this transaction.

The transaction code is reviewed 1303 and if it's for Terms of Userejected (21) 1310, the record is marked for deletion, and an 211 code1311 is returned; it's for user cancelled (22) 1320, an 221 code isreturned, and in either case, to the RTDA with RecLocID 1399.

The Validate Transponder process 1400 shown in FIG. 14 is generally onlycalled by several of the processes referred to above, such as the modifyaccount process 500 and the add Transponder process 600, and may laterbe called by other processes. First, a connection is established 1401with the processor, and Transponder ID and selected user info such asbirthdate, preferably conventionally encrypted is sent to the processordatabase 1402 along with a transaction code in the data header for thistransaction. The Transponder ID are verified against valid customeraccounts 1403.

If not verified 1450, an 035 code is returned 1435 with RecLocID andother Transponder account info 1499. If verified, a check is run to seeif there is a valid user account 1410, and if so, an 031 code isreturned 1431 with RecLocID and other Transponder account info 1499. Ifthere is no current valid user account, a check is run to see if theaccount is queued and pending activation 1420, and if so, an 032 code isreturned 1432 with RecLocID and other Transponder account info 1499. Ifthe account is not found to be pending 1420, a check is run to see ifthe account is marked for deletion 1430, and if so, and 033 code isreturned 1433 with RecLocID and other Transponder account info 1499. Ifnot marked for deletion and the account is otherwise not found 1440, an034 code is returned 1434 with RecLocID 1499.

The validate RFID account process 1500 shown in FIG. 15 is generallyonly called by the lost Transponder process 700. First, a connection isestablished 1501 with the processor, and card data including billingaddress, preferably conventionally encrypted, is sent to the processordatabase 1502 along with a transaction code in the data header for thistransaction. The account info is verified against valid customeraccounts 1503.

If not verified 1504, an 073 code is returned 1573 with RecLocID 1599.If verified, a check is run to see if the address is valid 1505, and ifso, an 071 code is returned 1571 with RecLocID and other Transponderaccount info 1499. If the address is not valid, an 072 code is returned1572 with RecLocID and other Transponder account info 1599.

With regard to systems and components above referred to, but nototherwise specified or described in detail herein, the workings andspecifications of such systems and components and the manner in whichthey may be made or assembled or used, both cooperatively with eachother and with the other elements of the invention described herein toeffect the purposes herein disclosed, are all believed to be well withinthe knowledge of those skilled in the art. No concerted attempt torepeat here what is generally known to the artisan has therefore beenmade.

In compliance with the statute, the invention has been described inlanguage more or less specific as to structural features. It is to beunderstood, however, that the invention is not limited to the specificfeatures shown, since the means and construction shown comprisepreferred forms of putting the invention into effect. The invention is,therefore, claimed in any of its forms or modifications within thelegitimate and valid scope of the appended claims, appropriatelyinterpreted in accordance with the doctrine of equivalents.

1. A method, comprising: identifying a transponder configured to providea unique identifier to a reader without physically becoming in contactwith the reader; presenting a user interface configured to receive fromthe user information including account information for at least onepayment account the user desires to associate with the uniqueidentifier; providing a local reader, wherein the transponder ispreviously encoded with the unique identifier, and the local readerreads the unique identifier for purposes of associating the at least onepayment account with the unique identifier; verifying a validity of theuser information; associating the user information with the uniqueidentifier; and dispensing the transponder to the user.
 2. A method ofclaim 1, wherein the unique identifier provided by the transponder isassociated with more than one payment account.
 3. A method of claim 1,wherein the at least one payment account includes one of: a credit cardaccount; a debit card account; a bank account; and a loyalty pointsaccount.
 4. A method of claim 1, wherein the user interface receives theuser information from an input device including at least one of: amagnetic strip reading device; a magnetic ink character reading device;a bar code reading device; a user entry device; and a digital imagingdevice.
 5. A method of claim 4, wherein verifying the validity of theuser information includes one of: determining whether the paymentaccount is active; determining whether the payment account is in goodstanding; determining whether information entered by the user via theuser entry device matches the user information associated withassociated information presented by a magnetic strip, magnetic inkcharacters, and a bar code presented by the user for verification; anddetermining whether the user information received via the user entrydevice corresponds with account information associated with the paymentaccount.
 6. A method of claim 5, wherein verifying the validity of theuser information is conducted by engaging a network.
 7. A method ofclaim 4, wherein the user information includes one of: a driver'slicense number; a birth date; a billing address; an encrypted value; andimage data.
 8. A method of claim 7, wherein at least a portion of theuser information is used as security information to validate use of thetransponder.
 9. A method of claim 1, wherein the user information isassociated with the unique identifier in a network.
 10. A method ofclaim 1, further comprising associating security information with theunique identifier.
 11. A method of claim 1, further comprisingassociating a loyalty points account with the unique identifier.
 12. Amethod, comprising: identifying a transponder configured to provide aunique identifier to a reader without physically becoming in contactwith the reader; presenting a user interface configured to receive fromthe user information including account information for at least onepayment account the user desires to associate with the uniqueidentifier, wherein the user interface receives the user informationfrom an input device including at least one of: a magnetic strip readingdevice; a magnetic ink character reading device; a bar code readingdevice; a user entry device; and a digital imaging device; verifying avalidity of the user information, including at least one of: determiningwhether the payment account is active; determining whether the paymentaccount is in good standing; determining whether information entered bythe user via the user entry device matches the user informationassociated with information presented by a magnetic strip, magnetic inkcharacters, and a bar code presented by the user for verification; anddetermining whether the user information received via the user entrydevice corresponds with account information associated with the paymentaccount; associating the user information with the unique identifier;and dispensing the transponder to the user.
 13. A method of claim 12,wherein the unique identifier provided by the transponder is associatedwith more than one payment account.
 14. A method of claim 12, furthercomprising providing a local reader, wherein the transponder ispreviously encoded with the unique identifier, and the local readerreads the unique identifier for purposes of associating the at least onepayment account with the unique identifier.
 15. A method of claim 12,wherein the at least one payment account includes one of: a credit cardaccount; a debit card account; a bank account; and a loyalty pointsaccount.
 16. A method of claim 12, wherein the user information includesone of: a driver's license number; a birth date; a billing address; anencrypted value; and image data.
 17. A method of claim 12, wherein atleast a portion of the user information is used as security informationto validate use of the transponder.
 18. A method of claim 12, whereinthe user information is associated with the unique identifier in anetwork.
 19. A method of claim 12, further comprising associating aloyalty points account with the unique identifier.
 20. A method,comprising: identifying a transponder configured to provide a uniqueidentifier to a reader without physically becoming in contact with thereader; presenting a user interface configured to receive from the userinformation including account information for at least one paymentaccount the user desires to associate with the unique identifier,wherein the user interface receives the user information from an inputdevice including at least one of: a magnetic strip reading device; amagnetic ink character reading device; a bar code reading device; a userentry device; and a digital imaging device; verifying a validity of theuser information by engaging a network, including at least one of:determining whether the payment account is active; determining whetherthe payment account is in good standing; determining whether informationentered by the user via the user entry device matches the userinformation associated with information presented by a magnetic strip,magnetic ink characters, and a bar code presented by the user forverification; and determining whether the user information received viathe user entry device corresponds with account information associatedwith the payment account; associating the user information with theunique identifier; and dispensing the transponder to the user.